Abstract: Aim To discuss the main causes of lower productivity of China's auto industry. Methods Based on the necessary statistic data, both qualitative and quantitative methods were used to analyze the current situation of China's auto industry. And the benchmarking method was used to compare the productivity of China's auto industry with the advanced levels. Results and Conclusion The main causes include the degree of concentration of production, scale, labor organization, technology level, supply of parts, labor skill level, product mix and competitive pressure. At last, some policy suggestions were proposed to government, such as expanding scales and lowering import tariff rate of automobile products.